Concepts




Net lending/net borrowing


Net lending/borrowing is a balancing item in the capital account and the fi-nancial account.

Net lending/borrowing corresponds to the amount available to a unit or sec-tor for financing, directly or indirectly, other units or sectors, or the amount which a unit or sector is obliged to borrow from other units or sectors.

The corresponding concept to net lending/borrowing in financial accounts is financial transactions, net. It is the difference between net acquisition of fi-nancial assets and liabilities. If a sector acquires financial assets in excess of the amount of new debt incurred during the period it is a net lender.



Validity of the definition

  • Valid

Source organisation

  • EU

Related concepts


Jaa